Embattled Myer suffers biggest sales setback in almost a decade - as boss blames cost-of-living squeeze for slump

Published: 02:02, 28 July 2026 | Updated: 02:29, 28 July 2026 Economic pressures have deterred Australians from Myer, according to the retail giant's boss, as the company suffers one of its worst sales declines in a decade.  Despite a wave of discounts and promotions, Myer consumer sales slumped 5.5 per cent in June and fell four per cent in July, according to a trading update.  The downturn has prompted Myer to assess a potential impairment, a move that could result in further losses in 2026.  After the announcement, chief executive Olivia Wirth highlighted the factors she said contributed to the decline. 'You have got the [interest] rate rises, cost-of-living pressures which are real. Fuel has obviously added to that,' she told The Australian. 'You have got a weakening housing market, low auction clearance rates and then, on top of that, you also had the perception of the Federal Budget. 'So the combination of all those factors has meant the customer is feeling it, and that obviously impacts on discretionary spend.' Beauty sales have also continued to struggle since Mecca earlier this year withdrew from Myer stores to focus on standalone locations, ending a 17-year partnership between the two brands.  Myer has recorded one of its steepest sales retreats in a decade (file image)  Since Ms Wirth was appointed executive chairwoman two years ago, Myer has acquired five clothing brands from Premier Investments, including Just Jeans, Dotti, Portmans, Jacqui E and Jay Jays. She also overhauled Myer's beauty offering and relaunched its popular loyalty program. The sales downturn is understood to be the company's largest in almost a decade. The decline came during a period of increased promotions across Myer's retail divisions, particularly in fashion and apparel, but the discounts failed to offset weaker customer spending. 'We had a stronger May and then obviously there was a significant reversal in June and July and that is off the back of … the cumulative effects of inflationary pressures, higher fuel prices, Middle East conflict, rate rises, slowing household income growth, the weaker housing market,' Ms Wirth said. 'All these factors obviously have compounded and you can see that volatility transpired into significant impact in June and July.' Despite providing a rare month-by-month sales update, Ms Wirth remained optimistic.  'While we remain cautious on the near-term consumer outlook, we are confident that the strategic actions we are taking today are strengthening the group's competitive position, resilience and supporting the creation of long-term shareholder value,' she said. Myer chief executive Olivia Wirth (pictured) says customers are feeling economic pressure  Are rising living costs making traditional department stores like Myer irrelevant to modern shoppers? What's your view?The retail giant has remained more stable than its traditional rival David Jones, according to The Australian. Its trading update revealed the company recorded an 11.3 per cent rise in total preliminary sales to $4.089billion for the year to July 2025.  Pro forma sales rose 0.3 per cent, driven by growth in homewares, womenswear and children's categories, as well as Just Jeans, its digital marketplace and concession sales.  However, according to the update, the successes did not offset lower results in the beauty department after Mecca left Myer stores. Myer is assessing potential impairments due to deteriorating trading conditions, but said it was too early to estimate the size or scope of any write-downs.  'Remember it (impairment) is non-cash and there is a process that you have to work through with auditors and we will provide the outcome at our full-year (results),' Ms Wirth said. The retailer will release its full-year results in September.